PERSONALIZED INVESTMENT

PROPOSAL FOR:
Name:

Date: Prepared by:

IS YOUR CURRENT PORTFOLIO WORKING AS HARD FOR YOUR MONEY AS YOU ARE?
Discover a dynamic way to visualize and compare your current portfolio with other asset
allocation models that may be well-suited to your investment goals. Through the application of a
proprietary, groundbreaking portfolio analysis methodology, Beacon Capital Management offers
you this personalized investment portfolio.
Contact Information:

Email: Telephone:
 PERSONALIZED INVESTMENT PROPOSAL

DISCLOSURE
Introducing the Beacon Personalized Investment Proposal
The Beacon Personalized Investment Proposal offers a powerful way to test investment assumptions against a variety of computer-generated
scenarios. This tool is provided through Beacon Capital Management and Gravity Investments and has been made freely available to your investment
professional. This tool is, is in effect, a proposal publishing system. A financial advisor can configure and generate a detailed proposal for each client
along with the necessary disclosures governing the sale of investment products. This web-based tool draws upon extensive investment and index
data and is designed to help you and your advisor allocate your assets, make adjustments and monitor the progress of your investments.

It’s important to keep in mind that the Personalized Investment Proposal provides illustrations only and is not intended to predict the outcome of
any investment strategy. There can be no assurance that an investment strategy based on the Personal Investment Portfolio will be successful. The
data, information, and content provided are for information and educational purposes only. There is no proprietary technology or asset allocation
model that can guarantee against loss of principal.Your investment professional’s use of this tool and its output is undertaken knowing that Beacon
Capital Management and Gravity Investments are not creating, endorsing or providing investment advice regarding any security, manager or market.

The Personal Investment Portfolio is provided on an “as-is” basis. Beacon Capital Management and Gravity Investments expressly disclaim all
warranties, express or implied, statutory or otherwise with respect to the tool (and any results obtained from its use) including, without limitation,
all warranties or merchantability, fitness for a particular purpose or use, accuracy, completeness, originality and/or non-infringement.

Portfolio selections for each proposal may use any of the securities in the vast Beacon Capital Management universe, including mutual funds and
exchange traded funds. Based on the holdings entered by the financial professional, the portfolio is ranked on a risk spectrum which ranges from
stable to aggressive. The financial professional can choose to fill out the risk profile questionnaire available at http://www.beaconinvesting.com, which
is used to determine the client’s position on the risk spectrum and to recommend the type of portfolio that would be suitable for the client. The
recommendations for the market capitalization and style ranges in the target asset allocations are based on quarterly Beacon Capital Management
forecasts, and are updated accordingly. A financial professional can opt not to complete the risk profile questionnaire and instead assign a portfolio
type to his/her client.

Accuracy In order for these analyses to be performed as accurately as possible, the tool requires that an investment have at least two years of
performance history. Any fund with less than two years of performance is placed in the ‘Other’ style category and excluded from any risk/return
analysis. Other investments not considered might have characteristics similar or superior to those proposed by your investment professional. The
risk and return assumptions represent long-term expected returns in the general market. The risk and return of each security, and as a result each
portfolio, is derived from the general market assumptions and the expected sensitivity of the specific securities to the market. As a result, some
portfolios will appear less risky while others will appear more risky.

There are risks involved with investing, including possible loss of principal. In addition to the normal risks associated with equity investing, narrowly
focused investments, investments in smaller companies and investments in single countries typically exhibit higher volatility.
• Large capitalization (large cap) investments involve stocks of companies generally having a market capitalization between $10 billion
and $200 billion. The value of securities will rise and fall in response to the activities of the company that issued them, general market
conditions and/or economic conditions.
• Middle capitalization (middle cap) investments involve stocks of companies generally having a market capitalization between $2 billion and $10
billion and considered more volatile than large cap companies. Mid cap investments are often considered to offer more growth potential than
larger caps (but less than small caps) and less risk than small caps (but more than large caps).
• Small capitalization (small cap) investments involve stocks of companies with smaller levels of market capitalization (generally less than $2
billion) than larger company stocks (large cap). Small cap investments are subject to considerable price fluctuations and are more volatile than
large company stocks. Investors should consider the additional risks involved in small cap investments.
• Growth investments focus on stocks of companies whose earnings/profitability are accelerating in the short term or have grown consistently
over the long term. Such investments may provide minimal dividends which could otherwise cushion stock prices in a market decline. Stock
value may rise and fall significantly based, in part, on investors’ perceptions of the company, rather than on fundamental analysis of the stocks.
Investors should carefully consider the additional risks involved in growth investments. Sector investing such as real estate can be subject to
different and greater risks than more diversified investments. Declines in the value of real estate, economic conditions, property taxes and tax
laws and interest rates all present potential risks to real estate investments.
• Investments in emerging or developing markets involve exposure to economic structures that are generally less diverse and mature, and to
political systems which can be expected to have less stability than those of more developed countries. Securities may be less liquid and more
volatile than US and longer-established non-US markets.
 PERSONALIZED INVESTMENT PROPOSAL

The expected risk and return of a portfolio is generated by assigning proxy benchmark indices weighted by the various asset styles in the portfolio. The
historical monthly returns of the benchmarks are used to calculate the expected risk and return of the portfolio over the previous ten year period. Of
course, investors cannot invest directly in an index. Indexes used include:
• S&P 500 Index: an index, with dividends reinvested, of 500 issues representative of companies in the U.S. large cap market.
• Russell 2000® Index: measures the performance of the 2,000 smallest companies in the Russell 3000® Index, representative of the US small
capitalization securities market.
• Lehman Brothers Aggregate BondTM Index: an index, with income reinvested, generally representative of intermediate-term government bonds,
investment grade corporate debt securities, and mortgage-backed securities.
• MSCI® EAFE Index: an index, with dividends reinvested, representative of the securities markets of 20 developed market countries in Europe,
Australasia, and the Far East.
• Dimensional Fund Advisors (DFA) has been developing and managing funds for more than twenty-five years. With over $85 billion under
management, DFA develops and maintains the strictest value portfolios in markets throughout the world. As a result, investors achieve a more
consistent portfolio structure.
• Lehman Brothers is an innovator in global finance and maintains leadership positions in equity and fixed income sales, trading and research,
investment banking, private investment management, asset management and private equity.
• Bond investors should carefully consider risks such as interest rate, credit, repurchase and reverse repurchase transaction risks. Greater risk,
such as increased volatility, limited liquidity, prepayment, non-payment and increased default risk, is inherent in portfolios that invest in high yield
(“junk”) bonds or mortgage backed securities, especially mortgage backed securities with exposure to sub-prime mortgages.
• Dynamic Intellidexes Using rules-based quantitative analysis, the Intellidex Indexes consistently evaluate their index composition on fundamental
growth, valuation, and risk factors.
• Wilshire Associates is a leading global investment technology, investment consulting and management firm.
• Deutsche Bank is a leading global investment bank with a strong and profitable franchise investing in commodities and currency.
• BlackRock® is a premier provider of global investment management, risk and advisory services to institutional and retail clients.
Other Important information and disclosures Fund objectives, risks, charges and expenses should be carefully considered before investing.
A prospectus containing this and other important information can be obtained by calling 937.439.9093 or visiting www.BeaconInvesting.com.
Please read the prospectus carefully before investing.

Not FDIC insured

Has no bank guarantee
May lose value
 PERSONALIZED INVESTMENT PROPOSAL

PORTFOLIO SUMMARY: CURRENT HOLDINGS VS. PROPOSED

Your Personal Investment Portfolio provides a three-dimensional way to compare your current portfolio against a proposed, alternative portfolio.
In addition, you will see a full complement of analytical data that focuses on return, as well as risk and diversification.

TERMS TO KNOW Current Holdings (original) Beacon Proposal (original)

Merged from standard Beacon portfolios
Standard deviation With its ups and downs
CP 80/20 (original) (100%)
more pronounced, a volatile stock will have a
higher standard deviation and more risk, than a
less volatile stock.

Semivariance Another risk measurement,

Semivariance, focuses only on downside
fluctuations; and, by averaging out the declines,
provides a gauge for potential portfolio losses.

Maximum draw down This is the largest

percentage decline between two equity peaks.

Ulcer Index Factoring in the depth and

duration of drawdowns, the Ulcer Index
provides another measurement of risk. A high
UI would indicate undue risk.

Sharpe Ratio This measurement distinguishes

whether a portfolio’s returns are due to
Return 8.77% 5.59%
intelligent decisions or excess risk. The
greater a portfolio’s Sharpe Ratio, the better 30% 15% 0% 0% 15% 30%
its risk-adjusted performance has been.
Risk measure
Standard Deviation 11.50% 9.36%
Sortino Ratio Similar to the Sharpe Ratio
above, this measurement removes the effects 0% 20% 40% 40% 20% 0%

of upward price movements to focus on the Semi-Variance 8.29% 6.76%

downside only, indicating how sustainable an 0% 20% 40% 40% 20% 0%
investment’s price is during adverse periods. Maximum draw down 14.15% 11.70%

0% 20% 40% 40% 20% 0%

Calmar Ratio This hedge fund tool gauges Ulcer Index 36.41% 35.93%
return relative to drawdowns. Generally, the
0% 20% 40% 40% 20% 0%
higher the better.
Ratio measure
IPC, Intra-Portfolio Correlation This Shape Ratio 0.44 0.20
statistical measurement determines the
2 1 0 0 1 2
degree to which the various assets in a Sortino Ratio 0.61 0.28
portfolio can be expected to perform in a
similar fashion or not. A measure of -1 means 2 1 0 0 1 2
Calmar Ratio 0.36 0.16
that the assets within a portfolio perform
perfectly in opposite. 2 1 0 0 1 2

Diversification
CC, Concentration Coefficient Another
IPC 12.80% 35.53%
measure of portfolio concentration, CC will
be equal to the number of assets if equally 100% 50% 0% 0% 50% 100%

weighted. The number will be proportionally CC 25.00 21.78

less as concentration increases. 30 15 0 0 15 30

Please keep in mind that this information is provided for general and educational purposes only, and is not intended to provide specific
investment advice. Beacon Capital Management encourages you to contact your advisor regarding your specific investments situation.
 PERSONALIZED INVESTMENT PROPOSAL

PORTFOLIO SUMMARY: CURRENT HOLDINGS VS. PROPOSED

Current Holdings (original) Beacon Proposal (original)

Merged from standard Beacon portfolios
CP 80/20 (original) (100%)

Key Name Percentage Key Name Percentage

 PERSONALIZED INVESTMENT PROPOSAL

DIVERSIFICATION OF YOUR PERSONAL INVESTMENT PORTFOLIO

In our analysis, diversification is more than a concept; it is a concrete attribute of your investment portfolio that can be
visualized. Using Beacon’s advanced technology, we can actually see that diversification in a way that integrates a new
dimension to portfolio analysis.

Broader diversification may help provide a higher level of risk-adjusted return in your portfolio recommendation.

Intra-Portfolio Correlation is a means to quantify the degree of diversification. The meter on the right shows the
amount of market risk eliminated from a portfolio. A value of 100% or -1 represents perfect diversification.
However, most traditional portfolios cannot achieve an IPC value substantially less than 0 (or greater than 50%).

Your IPC Percent Value for your new portfolio is:

56.17%

CC is a measure of portfolio concentration. CC will be equal to the number of assets if equally weighted, the
number will be proportionally less as concentration increases.

Your CC value for your new portfolio is:

9.38

HISTORICAL PERFORMANCE
Through up and down markets, your Personal Investment Portfolio would have pursued an attractive level
of risk-adjusted return.

This chart illustrates the hypothetical future growth of the proposed asset allocation strategy. This example is for illustrative purposes only and does
not reflect the actual return of any particular investment. Hypothetical returns are not a guarantee of future performance and are not indicative of
any specific investment. Hypothetical returns do not reflect the deduction of any related fees and charges.
 PERSONALIZED INVESTMENT PROPOSAL

HISTORICAL VIEW: RISK VS. RETURN OF PERSONAL INVESTMENT PORTFOLIO

No single investment or strategy is right all of the time. The chart below shows how the individual allocations in your Personal Investment Portfolio
would have performed independently. In aggregate, a portfolio made up of so many different components can offer a value measure of
non-correlation in pursuit of an attractive level of risk-adjusted return.

Key Name Key Name

Please refer to the Disclosure section in this document for a more comprehensive description of the
indices used in this report.
 PERSONALIZED INVESTMENT PROPOSAL

THE VALUE OF PROFESSIONAL ADVICE

From setting goals to selecting investments and fine-tuning strategies, your financial professional will help you
maximize your opportunities and minimize your exposure to investment risks. There is a wealth of services that
your financial professional provides; here is a sampling:
• Guidance in evaluating and selecting investment options
• Objective advice to help you make the most informed decisions
• Educational resources that inform and empower
• Ongoing portfolio monitoring and periodic rebalancing
• Regular consultation and review of your portfolio
As market conditions change, your financial professional will help you keep a long-term perspective and
provide context. As your personal situation evolves, your financial professional will help you determine the
most effective response.

When you look to the future, you can count on your financial professional to help every step of the way.